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office 365 hosted exchange - working with retention policy how to keep deleted items longer

I'd like to see what the retention policy is for our office 365 account - when you delete something from your inbox,  it goes into the deleted items folder....  does the system delete the contents of that folder at some point? A rolling x days?  (so if you looked in that folder there's nothing longer than x days?)

And if you manually delete  / empty your deleted items folder, there's a certain amount of time Y that things can be recovered after being deleted from the deleted items folder?   I'd like to know what that Y period is, and likely change it to longer.

I found some pages on the web that talk about going into o365 admin, exchange admin, compliance, edit the retention policies (there's only 1  - the default policy in our account).  That's where I don't know how to proceed.

http://www.storagecraft.com/blog/office-365-backup-recovery-overview/

https://blogs.office.com/2015/02/20/extended-email-retention-deleted-items-office-365/

There's the 'tags'? for 1 week, etc.  it doesn;'t show which is active to what folders / what users.  

Am I in the right spot?  

Or as one page said, you need to use powershell?  But that they talk about for one mailbox. I want it to apply to all users / mailboxes in the account.

https://technet.microsoft.com/en-us/library/dn163584(v=exchg.150).aspx

Can I change it to a very long time as part of o365?  That space just goes against the 50GB alloted for each mailbox?

Is there a reason to NOT change it to a very long time?  Inevitably, someone will say I accidentally deleted a contact months ago and I've emptied my deleted items folder a couple months ago.  can we get that contact back?  Seems this would be good to help protect users from themselves.  We are a small business with no retention / hipaa / securities requriements  (which would actially be kinda where I'm heading with this - wanting to keep things for a long time).  But I don't want to have to spend more money on legal hold or similar.

Thanks!
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Avatar of Vasil Michev (MVP)
Vasil Michev (MVP)
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